Capital Infra Trust IPO Good Or Bad: Discover Key Factors Before Investing.
The Capital Infra Trust, an infrastructure investment trust (InvIT) backed by Gawar Construction Limited, is set to open its Initial Public Offering (IPO) on January 7, 2025. The IPO aims to raise ₹1,578 crore, with a price band of ₹99 to ₹100 per unit. Interestingly, the Capital Infra Trust IPO Grey Market Premium as of January 6, 2025, stands at zero, reflecting neutral sentiment among market participants.
The Capital Infra Trust IPO offers a mix of fresh issue and Offer for Sale (OFS), primarily to support debt repayment and capital expenditure needs. Backed by a reputed sponsor, Gawar Construction Limited, the trust’s focus on toll road assets offers a stable revenue model. However, with no retail quota and a neutral GMP, potential investors must choose their options carefully.
This article delves into the essential details of the Capital Infra Trust IPO, including issue specifics, financials, objectives, peer comparison, and help you to decide Capital Infra Trust IPO Good Or Bad Investment.
Capital Infra Trust INVIT IPO Grey Market Premium
As of now, the GMP for Capital Infra Trust IPO is ₹0, indicating that the shares are trading at their issue price in the grey market. This neutral stance suggests investors are cautious about the offering, neither overly optimistic nor pessimistic.
Capital Infra Trust IPO Details
| Details | Information |
|---|---|
| Issue Size | ₹1,578 crore |
| Fresh Issue | ₹1,077 crore |
| Offer for Sale (OFS) | ₹501 crore |
| Price Band | ₹99 – ₹100 per unit |
| Market Lot | 150 units |
| Minimum Investment | ₹15,000 |
| Retail Quota | None (institutional & HNI investors only) |
| IPO Opening Date | January 7, 2025 |
| IPO Closing Date | January 9, 2025 |
| Allotment Finalization | January 10, 2025 |
| Refunds Initiation | January 13, 2025 |
| Credit to Demat Accounts | January 13, 2025 |
| Listing Date | January 14, 2025 |
INVIT IPO Objectives
The Capital Infra Trust plans to use the funds to:
- Repay or prepay borrowings for its project SPVs, reducing debt.
- Fund infrastructure-related capital expenditure, ensuring operational efficiency.
- General corporate purposes to support business operations.
About Capital Infra Trust(INVIT)
Capital Infra Trust was formed in 2023 as a specialized infrastructure investment trust. Its primary focus is on operating and managing toll road projects, ensuring consistent revenue generation through toll collections and annuity payments. Sponsored by Gawar Construction Limited, the trust benefits from a well-established sponsor with expertise in road construction and management across 19 Indian states.
Capital Infra Trust erstwhile National Infrastructure Trust
Financial Performance
| Metric | FY 2022 | FY 2023 | FY 2024 | H1 FY 2025 |
|---|---|---|---|---|
| Revenue from Operations (₹ Cr) | 1,981.42 | 2,518.92 | 1,543.51 | 792.27 |
| Profit After Tax (₹ Cr) | 125.56 | 497.19 | 125.77 | 115.43 |
| Total Assets (₹ Cr) | 2,502.80 | 4,283.33 | 4,724.07 | 4,905.26 |
Capital Infra Trust IPO Good Or Bad
- Pros: Backed by a reputed sponsor, stable revenue model, and focus on reducing debt, increasing asset value.
- Cons: No retail quota, neutral GMP, and competition from well-established players.
As per GMP of this IPO, this IPO is not suaitable for short term investors who looking for listing gains.
Disclaimer– This article is for informational purposes only and not investment advice. Please research thoroughly and consult a financial advisor before making investment decisions. IPO investments are subject to market risks; read the prospectus carefully.
Pravin Bhosale
Since stepping into the world of trading in 2019, i have gained valuable experience navigating the markets, have knowldge in indices like Bank Nifty, Nifty IT, Sensex, Bankex, and Finifty. Also have sound knowldge about IPO industry & ipo process. our blog aims to make finance approachable, offering practical insights for readers to better understand and act on market trends.
FAQs
- What is the price band for Capital Infra Trust IPO?
The price band is ₹99 to ₹100 per unit. - Is there a retail quota in this IPO?
No, the IPO is targeted at institutional and HNI investors only. - What is the expected listing date?
The expected listing date is January 14, 2025. - Should I apply for this IPO?
If you’re an HNI or institutional investor seeking stable returns from infrastructure projects, this IPO may suit you. - What is the GMP for this IPO?
The current GMP is ₹0, reflecting neutral market sentiment. - When is the allotment for this IPO?
The allotments will be on 10th January.
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